Little Impact From EZ Flash HICP; NYCB Worries Prompt Core FI Bid

A strong move off intraday lows for core FI markets came as headlines related to NYC Bancorp's "material weaknesses" crossed, prompting a safe haven bid for core FI.

• The Eurozone flash February inflation release had little lasting impact on core/semi-core EGBs, with the firmer-than-expected print telegraphed by the national data released over the past two days.
• Upward revisions to the Eurozone manufacturing PMI may have helped cap rallies prior to the NYCB headlines, while Eurozone unemployment was in line with consensus at 6.4%.
• Bunds are flat at 132.65, trading at intraday highs after coming under pressure earlier in the session.
• 10-year periphery spreads to Bunds are a wider as equities come under pressure.
• ECB-dated OIS contracts operate within yesterday's range, with 91bps of rate cuts priced through the remainder of 2024. ECB Holzmann's comments were in line with his hawkish bias.
• The remainder of today's calendar is US centric - with ISM manufacturing highlighting on the data side alongside a number of Fed speakers.